Explain how businesses add value to resources to meet the needs of stakeholders.
Define Decision making
explain and apply opportunity cost
Businesses sell goods and services
Sell to individulas or other businesses
What Businesses Need;
Evaluate sources of finance (short,medium and long term)
Relationship between sources and legal identity
Understand Cashflow and its importance
Labour, Human resource planning; relationship between orgasnisation objectives and human resources; work-force planning; recuitment, selection, induction, training, severance
Do NOT need a detailed knowledge of social and corporate responsibility.
2 of 5
Classification of Business
Economic sector;
Primary, secondary and tertiary sectors
Size;
Calculate, analyse and interpret typical measures. (Turnover, profit and employees)
Economies of Scale and diseconomies of scale
Legal structure;
understand sole trader, partnership, public limited company, public limited company, franchises as types of businesses.
Ownership;
Understand the difference between public and private ownership.
3 of 5
Objectives
Corporate Objectives
The central nature and role of objectives at corporate and departmental level; different types of objective and their changing nature; Risk, reward and ownership and entrepreneurship.
Stakeholders
BE able to analyse and explain reasons for conflict between a companies stakeholders.
4 of 5
Other Influences
The Market
impact of the dynamic and challenging marketplace; describle and explain factors influencing supply
Understanding of the interaction of supply and demand equilibrium, explain the effects of excesses and shortages
Understanding of different market structures, impact of competition.
Technological Changes
Opportunities and Threats resulting from technologicial change, new products and production methods
Social and Cultural
Demographic changes, consumer and employee patterns and influences of other stakeholders
Moral and ethical
Recognise and assess possible conflict in addressing different perspectives
Comments
No comments have yet been made